trade surplus. Trade surplus means that the value of a nation’s exports exceeds the value of its imports. A trade deficit occurs when the value of a nation’s exports is less than the value of its imports. In this example: Exports of 75 million are greater than the imports of $52 million.

If a country exports a greater value than it imports, it has a trade surplus or positive trade balance, and conversely, if a country imports a greater value than it exports, it has a trade deficit or negative trade balance. As of 2016, about 60 out of 200 countries have a trade surplus.

If the exports of a country exceed its imports, the country is said to have a favourable balance of trade, or a trade surplus. Conversely, if the imports exceed exports, an unfavourable balance of trade, or a trade deficit, exists.

Unfavorable Trade Balance Sometimes, a trade deficit can be unfavorable for a nation, especially one whose economy relies heavily on the export of raw materials. Generally, this type of nation imports a lot of consumer products. Some countries are so opposed to trade deficits that they adopt mercantilism.

If a country sells more products than it buys, it has a favorable balance, called a trade surplus. If it buys more than it sells, it has an unfavorable balance, or a trade deficit.

A country’s balance of trade is defined by its net exports (exports minus imports) and is thus influenced by all the factors that affect international trade. These include factor endowments and productivity, trade policy, exchange rates, foreign currency reserves, inflation, and demand.

Some of the factors include: cost; price elasticity of demand; competition; nature of products or industry; exchange rate fluctuations; distribution system; location of production facility; location and environment of the foreign market; and government regulations in the foreign market.

The general environment of an organisation is made up of vital components such as economic, technological, social, demographic, political and legal and global forces. These have positive, neutral and negative influence on business.

Factors Affecting Small Business Success

• personal characteristics. Management experience, functional skills, and relevant business sector knowledge are ingredients in business leader’ that will influence the recipe for success.
• Network.
• Marketing Plan.
• knowing failure aspects.
• The market.
• Sales.

The study considered eight factors that influence the business success. These factors are: founder experience, socio economic background, skills and knowledge, values and expectation, industry characteristics, management and resources, labour and technology and financial base.

The following factors will influence your fortunes and your organization’s growth over the long haul:

• Trust. At every level of your organization, insist that workers understand the importance of keeping their word and living up to your values.
• Decisiveness.
• Competition.
• Records.
• Network.
• Patience.
• Risk.
• Optimism.

Firms with strong positive reputations attract better people. They are perceived as providing more value, which often allows them to charge a premium. Their customers are more loyal and buy broader ranges of products and services.

Personal debt levels. Rising debt levels will be a source of concern – especially if interest rates rise or the economy slows down. Economic growth – A recession will invariably be associated with a fall in consumer confidence; positive economic growth tends to improve consumer confidence. Current economic situation.